The decision is now official. UPM has confirmed the end of label materials production at its Nancy site in Meurthe-et-Moselle. On November 28, the French authorities validated the outcome of the consultation process initiated in September with employee representatives. A total of 79 employees out of a workforce of around 190 are affected by this downsizing.
This industrial site, historically dedicated to the manufacture of self-adhesive materials for the UPM Raflatac division, is now shifting to an exclusively logistical activity. It will continue to serve as a slitting and distribution platform for the Western European market. UPM highlights "optimal service and delivery times" to justify this partial conversion.
When the project was announced in September, the management of the Adhesive Materials division of the Finnish UPM-Kymmene Group justified the reorganization by "overcapacity resulting from exceptional market trends in recent years" . The group, which employs nearly 17,000 people worldwide and has sales of 10.5 billion euros in 2023, is looking to concentrate production on plants deemed more cost-competitive.
Tim Kirchen, Executive Vice President of UPM Adhesive Materials, said at the time that the changes were aimed at "improve overall operating profitability and maximize synergies" . He also spoke of a gain in product quality thanks to this centralization.
The number of jobs affected by this restructuring has now been specified: 79 positions will be eliminated. In September, the initial estimate was of up to 82 employees potentially affected. UPM has indicated that it will provide support for employees affected by the downsizing, without however detailing the details of the scheme.
